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Thread: Making a fortune in real estate

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    Making a fortune in real estate

    Have any of you been to www.realestatefortune.com ? A "self made millionare" wrote a book giving a step by step detailed description on how to make a fortune in real estate. The only reason I am even considering investing in the book is he has a $ back guarantee. He guarantees $10k in 60 days or he'll refund you for the price of the book and give you $100. Now I'm a realist & I know that if it sounds to good to be true it usually is but since there's a $ back guarantee I'm thinking of giving it a try.
    If anyone has any info on this please reply.

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    God/dess Emily's Avatar
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    Default Re: Making a fortune in real estate

    For some reason I can't access the page, but I'm guessing this is some kind of Carleton Sheets program.


    These can work, but take hard work, persevervance, and a little luck.

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    Banned Melonie's Avatar
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    Default Re: Making a fortune in real estate

    As posted in other threads, many of the underlying financial assumptions behind successful speculation in real estate by "amateur investors" are now becoming questionable. Short term interest rates have risen with long term rates likely to soon follow, increasing monthly mortgage payments. Real estate property taxes are increasing as states and localities scramble to balance their budgets. Real estate market prices (with the exception of a few 'hot' areas) are increasing at a slower pace, with some indications that future real estate prices may stabilize or even decline. Tighter credit/income requirements by mortgage lenders/insurers is reducing the number of potential qualified buyers, decreasing the 'demand' for real estate. Financial distress, i.e. job loss due to layoffs, outsourcing, etc. is forcing some 'marginal' homeowners into bankruptcy/default, increasing the "supply" of real estate.

    I'm not saying that it's impossible to make big money in real estate speculation. What I am saying is that the risks of "amateur investors" LOSING money by speculating in real estate today are rapidly increasing.

  4. #4
    Sitri
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    Default Re: Making a fortune in real estate

    I agree with Melonie. Things are TOOO hot in many areas and it makes it harder to find a deal in real estate.

    It all gets into location, timing, and taxes. In Tampa, we have a very, very hot area. Prices are increasing 20% / year. Because there is a law that real estate taxes can only increase 3% / year if you live in the house you can keep most of the increase instead of paying it in taxes.

    Eight years ago, houses on the water were selling for $500,000. Those exact same houses are being torn down and the lots are going for $1,300,000. Yes, I said the lots....

    If you live in a nice house on that lot, it is going for 1,500,000 to 2,000,000. Not a bad return. Capital gains tax on the excess gain over $500,000. So, if you paid $500,000 You will owe about $7,500. The rest goes to the bank after real estate commission and closing costs.

    But, you also have to be selective in getting a realtor. A listing realtor will want 5% -6% of the total price. This means that you will be paying $75,000 to $90,000 in real estate fees. But, if you go online, you can find a list broker to get you into the Multiple Listing Book for 0.5% + 3% to the selling agent. Try selling it yourself for 90 days as 10% of all home sale result from the sign in the front yard. Retain an attorney to make sure the offer is solid with non-refundable deposits behind it.

    If you are buying a house, look for the By Owner signs who are trying to save the commission, but be an excellent negotiator as they may be over priced. If you make an offer make sure that it is subject to appraising out and to inspections. Have the appraisor selected based on expertise as most appraisors are there to make the price come out right so the deal can go through.

    I won't write a book on this because there are plenty, but you need to have timing. There a many, many people who made money and lost money on Real Estate. It is not a slam dunk.

    By the year 2030, the actual number of homes in the U.S. must increase by 50% because of the population. During this, boom and bust cycles will happen is specific areas.

    I would look at Pasco county north of Tampa. Cheap, Growing, and a new interstate is being planned.

    Have fun.

    For me, I am cashing out and moving to an inexpensive city in the midwest, putting $1,000,000 in the bank and living in a paid off house.
    Last edited by Sitri; 01-25-2005 at 08:46 AM.

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    God/dess VenusGoddess's Avatar
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    Default Re: Making a fortune in real estate

    The most important thing about doing this is learning the areas and not just buying any house cuz it's cheap. If you are buying a house in a depressed area...you're not going to get much out of it...unless the area is being "re-done" (like Cabrini Green/Robert Taylor areas in Chicago). The house on the land is important, but the land that the house SITS on is the most important.

    It's not as easy as it sounds...it's not as "cut and dry" as people like to think it is...but it IS possible.

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    Default Re: Making a fortune in real estate

    Your right venus its all about location with realestate. Agents always say location,location,location. Its the most important thing. The thing is to buy in the wanted locations before they get built up.

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    Featured Member scorpio's Avatar
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    Default Re: Making a fortune in real estate

    all you so called experts are weighing in without getting to the point.
    Most real estate courses are variations on the theme of buying property for less than what its worth. this can be done. if this course can teach you how to identify property thats undervalued and how to structure the deal then its worth it. people make fun of carlton sheets, and some of his stuff is outdated, but his reasoning is sound. Its all about finding property BELOW MARKET VALUE. Mel is right that amatures lose money, because most never learned how to buy property. If you go to your friendly neighborhood realtor, find a house and buy it to rent out, you probably will make little or no profit. Buy a forclosed or distressed property or one that the owner has financial problems, well thats another story.

    Dont let people scare you out of educating yourself.
    Last edited by scorpio; 01-26-2005 at 11:13 PM.

  8. #8
    Sitri
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    Default Re: Making a fortune in real estate

    Scorpio... on the money.

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    Default Re: Making a fortune in real estate

    Scorpio, agreed ! ... with the proviso that the property and structure are properly analyzed to be holding no surprises.

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    Default Re: Making a fortune in real estate

    I would not look at buying a book solely because it has a money back guarantee.

    You should be buying books on this subject because you are interested in it and want to expand your knowledge base.

    When you buy books at Borders or Barnes and Noble do you only do so if you are able to return them if you don't like what they say?

    I agree with Scorpio on the reasoning behind the books. Buy the course and learn from it, but realize that property values vary from market to market. Some cities are harder for a novice with little money to break into, and others in remote places may produce a few creative deals which could be viable if you wanted to live in the houses, but not offer a low enough price or be in an area of high enough appreciation and demand to be able to sell quickly at a profit or be able to rent or lease option with a positive cash flow.

    It is thus important to familiarize yourself with property values in areas you may be interested in, and realize that it will take a LOT of research and turned down offers before you find that one deal that "could" net you a positive result.

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    Featured Member scorpio's Avatar
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    Default Re: Making a fortune in real estate

    What she said!

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